The Economic Development Digest - July 19, 2013

Womble Carlyle’s Economic Development Digest aggregates news, opportunities and legislation impacting business in the Southeast and Mid-Atlantic U.S.

In this week's Economic Development Digest:

South Carolina

S.C. maintains strong reputation for foreign investment, scedablog.com (July 15, 2013) Greenville ranks number 2 overall among American cities with populations under 100,000 for success in attracting foreign investment. South Carolina releases draft guidance on new data center sales tax exemptions, sctax.org (July 18, 2013) Draft guidance on which facilities, equipment, and activities qualify for sales and use tax exemptions for certain data centers enacted by the South Carolina Legislature in 2012 is available for review, the state revenue agency announced.

North Carolina

North Carolina budget compromise would cut individual and corporate income taxes, TaxAnalysts.com (July 16, 2013)** North Carolina Gov. Pat McCrory (R) and the state's lawmakers on July 15 announced a deal on a sweeping tax package that would switch from a progressive to a flat personal income tax, lower corporate income taxes, and repeal the estate tax. Lassiter named chair of N.C. Economic Development Board, Charlotte Observer (July 15, 2013) Governor McCrory has name John Lassiter as Chair of the North Carolina Economic Development Board. The North Carolina Economic Development Board is the group charged with leading McCrory’s new economic development approach for North Carolina. Gov. McCrory, GOP legislative leaders tour tax plan as job creator, The News & Observer (July 15, 2013) Governor McCrory unveils a plan this week in North Carolina to trim income taxes and limit future government spending. McCrory hopes that his tax reform initiative will send the message to businesses that North Carolina is “open for business”. Road Worrier: NC leaders hope road dollars can sweeten a sour economy, The News & Observer (July 15, 2013) A new law in North Carolina shapes spending priorities for transportation projects. NC tax reform heads to McCrory for final approval, wncn.com (July 17, 2013) A comprehensive tax reform bill passed a final vote in the North Carolina House and Senate Wednesday and now progresses to Governor McCrory to be signed. The bill reduces corporate and individual income tax rates, expands the sales tax base and limits mortgage interest and real estate taxes at $20,000.

Maryland

State representatives scored on business-related legislation, The Star Democrat (July 10, 2013) Maryland Business for Responsive Government released its 2013 roll call, grading Maryland state Senators and delegates based on how friendly they were in positions taken on legislation during this past Maryland General Assembly session.

California

California allows sales tax exemption for manufacturing, R&D equipment, TaxAnalysts.com (July 11, 2013)** California AB 93, signed July 11 by Gov. Jerry Brown (D), repeals the state's enterprise zone program, retains a hiring tax credit for hiring the unemployed, and allows a statewide sales tax exemption for manufacturing equipment or research and development equipment purchases for biotech and manufacturing companies. Demise of enterprise zone program hurts workers, The Desert Sun (July 13, 2013) Governor Brown eliminated California’s enterprise zone program, replacing it with a program with rigid qualification requirements for businesses to claim the relevant hiring credit. Our voice: Entering a new zone, The Desert Sun (July 13, 2013) In eliminating California’s enterprise zone program, Governor Brown replaces it with a new set of incentives, which some argue serve a greater geographic area than did the enterprise zone program. California prepares to help businesses apply for sales and use tax exemption, TaxAnalysts.com (July 12, 2013)** The California State Board of Equalization has announced that it is preparing to promulgate regulations and forms relating to the partial sales and use tax exemptions for manufacturing or bio-technology equipment provided for by recent legislation (AB 93 and SB 90); the exemptions take effect July 1, 2014.

WCSR/National

SEC adopts rules to eliminate the prohibition against general solicitation in Rule 506 and Rule 144A offerings and proposes amendments to Form D and Regulation D, wcsr.com (July 2013) On July 10, 2013, the Securities and Exchange Commission (the "SEC") adopted rules to amend Rule 506 of Regulation D and Rule 144A, as required by Section 201(a) of the Jumpstart Our Business Startups Act (the "JOBS Act) enacted in 2012. COST releases business tax burden study for fiscal 2012, TaxAnalysts.com (July 16, 2013) A business tax burden study prepared for the Council On State Taxation by Ernst & Young estimates that businesses across the nation paid $649 billion in state and local business taxes, including property taxes and sales and excise taxes on business inputs, in fiscal 2012, a 3.9 percent increase from fiscal 2011.

**Note: a paid subscription is required to access this article. A brief description has been provided. Please contact Womble Carlyle’s Economic Development Team for more information on these developments.

Womble Carlyle's Economic Development Team helps clients explore opportunities for locating or expanding operations in the Southeast and Mid-Atlantic U.S. Our Economic Development Team combines a thorough working knowledge of economic development incentives; land use and siting procedures; and regulatory matters at the state, county and local levels, drawing on strong relationships built over many years with key governmental and civic leaders. For more information visit www.wcsr.com/economicdevelopment.

If you have any questions about this Economic Development Digest, please e-mail EconDigest@wcsr.com or contact any member of Womble Carlyle's Economic Development Team.